U.S. stock futures inched higher in the last trading day of 2024, driven by economic recovery post-pandemic, hopes of reduced borrowing costs, and advancements in artificial intelligence. The S&P 500, Dow Jones, and Nasdaq indices are near record highs, marking a second consecutive year of gains. The Federal Reserve has cut interest rates by nearly 100 basis points in 2024, with tech stocks rising sharply due to AI-driven profitability.
NVIDIA (NVDA, Financial) has surged nearly 170% this year, reaching a market cap of $3 trillion, while Tesla (TSLA) has regained its $1 trillion valuation. The Russell 2000 has hit a record high, gaining about 10%, boosted by small-cap stocks and Trump's election victory, which fueled bets on deregulation and tax cuts.
However, U.S. Treasury yields have risen, challenging stock valuations. Bitcoin's price soared to $100,000, benefiting crypto stocks like MicroStrategy (MSTR), whose shares have tripled this year.
